Coinbase set to win SEC dismissal in ‘major win,’ analyst says

Coinbase announced on February 21 that the Commission for Securities and American Exchange should reject its trial in June 2023 against the Crypto Exchange, a decision that HC Wainwright & Co. Co. call a “major victory” for the company and the wider cryptographic industry.

Although the final approval of the SEC commissions remains unanswered, Coinbase management hopes that the case would be authorized next week, said analyst Mike Colonnais in a report.

The SEC trial allegedly alleged that Coinbase offered titles of unregistered cryptographic assets and illegally worked as an exchange, broker and compensation company. But, expectations for dismissal Cancel a headwind in progress on the Coinbase stock and provide a clear signal that the dry is a exchange position towards a more friendly cryptographic position.

Raised regulatory overhang, the expansion of companies expected

“Today’s announcement raises a major overhang of actions,” wrote Mike Colonnaise and Dylan Scales analysts in their report. They also expect the decision considerably reduced the expensive legal costs and open doors for the expansion of businesses, in particular in the lists of intention and crypto.

“We would also expect the rejection of the Coinbase case finally leading to an expansion of the business clearing activities, which had been constrained since the implementation of the action in application,” noted the analysts. “We also see the potential for accelerating new cryptography announcements on the Coinbase platform, which would benefit the subscription income and transaction services and services respectively.”

Coinbase shares opened about 1% more Friday morning in a mugrum decision while the analyst expected “a more positive reaction” of the news. But, the actions of Coinbase quickly evolved in the red while the news of a Major hack in Bybit frightened the whole cryptography industry.

Coinbase shares closed on Friday at $ 235.37, down 8.2%.